The Compensatory Afforestation Fund Act, 2016.

(1) This Act may be called the CompensatoryAfforestation Fund Act, 2016. (2) It extends to the whole of India except the State of Jammu and Kashmir*. (3) Save as otherwise provided in this Act, it shall come into force on such date1 as the CentralGovernment may, by notification in the Official Gazette, appoint.

In this Act, unless the context otherwise requires, (a) "ad hoc Authority" means the ad hoc Compensatory Afforestation Fund Management andPlanning Authority constituted under the order dated the 5th May, 2006 of the Supreme Court in T.N.Godavarman Thirumulpad vs. Union of India and Others, [Writ Petition (Civil) No. 202 of 1995]; (b) "Chairperson, National Authority" means the Chairperson of the governing body of theNational Authority; (c) "Chairperson, State Authority" means the Chairperson of the governing body of the StateAuthority; (d) "compensatory afforestation" means afforestation done in lieu of the diversion of forest landfor non-forestry use under the Forest (Conservation) Act, 1980 (69 of 1980); (e) "environmental services" includes (i) provision of goods such as wood, non-timber forest products, fuel, fodder, water andprovision of services such as grazing, tourism, wildlife protection and life support; (ii) regulating services such as flood moderation, carbon sequestration and health of soil, airand water regimes; (iii) supporting such other services necessary for the production of ecosystem services,biodiversity, nutrient cycling and primary production including pollination and seed dispersal; (f) "Head of the regional office" means the senior-most officer appointed by the CentralGovernment at regional office to deal with the forest conservation matters under the Forest(Conservation) Act, 1980 (69 of 1980); (g) "monitoring group" means a group of experts to monitor the activities undertaken fromamounts released from the National Fund and State Fund constituted under sub-section (3) of section9; (h) "National Authority" means National Compensatory Afforestation Fund Management andPlanning Authority constituted under section 8; (i) "National Fund" means the National Compensatory Afforestation Fund established under subsection (1) of section 3; (j) "net present value" means the quantification of the environmental services provided for theforest area diverted for non-forestry uses, as may be determined by an expert committee appointed bythe Central Government from time to time in this regard; (k) "penal compensatory afforestation" means afforestation work to be undertaken over and abovethe compensatory afforestation specified in the guidelines issued under the Forest (Conservation) Act,1980, in lieu of the extent of area over which non-forestry activities have been carried out withoutobtaining prior approval of the competent authority under the Forest (Conservation) Act, 1980 (69 of1980); (l) "prescribed" means prescribed by rules made by the Central Government in consultation withthe State Governments under this Act; (m) "State Authority" means the State Compensatory Afforestation Fund Management andPlanning Authority constituted under section 10; (n) "State Fund" means the State Compensatory Afforestation Fund established by each Stateunder sub-section (1) of section 4; (o) "State Government" includes Union territory Administration; (p) "user agency" means any person, organisation or company or department of the CentralGovernment or State Government making a request for diversion or de-notification of forest land fornon-forest purpose or using forest land for non-forest purpose in accordance with the provisionscontained in the Forest (Conservation) Act, 1980 (69 of 1980) and the rules made and guidelines issued, thereunder.

(1) With effect from such date as the Central Governmentmay, by notification in the Official Gazette, appoint in this behalf, there shall be established for thepurposes of this Act, a special Fund to be called the "National Compensatory Afforestation Fund" underthe public account of India. (2) The National Fund shall be under the control of the Central Government and managed by theNational Authority in such manner as may be prescribed. (3) On the date of establishment of the National Fund, all monies collected by the State Governmentsand Union territory Administrations which has been placed under the ad hoc Authority and deposited inthe nationalised banks shall be transferred to the National Fund. (4) There shall also be credited into the National Fund, by each State on yearly basis, ten per cent. ofthe funds realised from the user agencies in respect of the forest land diverted in their favour, which havebeen credited directly into the State Fund. (5) There shall also be credited to the National Fund (a) grants-in-aid received, if any, by the National Authority; (b) any loan taken or any borrowings made by the National Authority; (c) any other sums received by the National Authority by way of benefaction, gift or donations. (6) The monies received in the National Fund shall be an interest bearing fund under public accountsof India. (7) The balance in the National Fund shall be non-lapsable and get interest as per the rate declared bythe Central Government on year to year basis.

(1) With effect from such date as each State Government may, bynotification in the Official Gazette, appoint in this behalf, there shall be established for the purposes ofthis Act, a special Fund to be called the "State Compensatory Afforestation Fund-......... (nameof State)" under public accounts of such State: Provided that in case of Union territory having no legislature, such fund shall be established under thepublic account of Union of India with effect from such date as the Union territory Administration may, bynotification in the Official Gazette, appoint in this behalf. (2) The State Fund in each State shall be under the control of the State Government of such State andmanaged by the State Authority of such State, in such manner as may be prescribed. (3) There shall be credited into the State Fund of a State (i) the unspent balance of all monies which has been transferred by ad hoc Authority to the StateCompensatory Afforestation Compensatory Afforestation Funds Management and Planning Authorityconstituted in such State in compliance of guidelines dated the 2nd July, 2009; (ii) all monies transferable from the National Fund under clause (a) of section 5; (iii) all monies realised from user agencies by such State towards compensatory afforestation,additional compensatory afforestation, penal compensatory afforestation, net present value, catchmentarea treatment plan or any money for compliance of conditions stipulated by the Central Governmentwhile according approval under the provisions of the Forest (Conservation) Act, 1980 (69 of 1980);and (iv) the funds recoverable from user agencies by such State in cases where forest land divertedfalls within the protected areas, that is, areas notified under sections 18, 26A or 35 of the Wild Life(Protection) Act, 1972 (53 of 1972) for undertaking activities relating to the protection of biodiversityand wildlife. (4) A State Government may also credit to the State Fund constituted by it (i) grants-in-aid received, if any, by the State Authority; (ii) any loan taken or any borrowings made by the State Authority; (iii) any other sums received by the State Authority by way of benefaction, gift or donations. (5) The monies received in the State Fund shall be an interest bearing fund under public accounts. (6) The balance in each State Fund shall be non-lapsable and get interest as per the rate declared bythe Central Government on year to year basis.

Save as otherwise provided in this Act, themonies available in the National Fund shall be disbursed and utilised in the following manner, namely: (a) ninety per cent. of the all monies collected by a State, which has been placed under the adhoc Authority and the interest accrued thereon, shall be transferred to the State Fund established insuch state under sub-section (1) of section 4; (b) the balance ten per cent. of all monies collected by the States and Union territoryAdministrations, which has been placed under the ad hoc Authority and the interest accrued thereon,and all fresh accrual to the National Fund, as provided in sub-section (4) of section 3, and the interestaccrued thereon, shall be utilised for meeting (i) the non-recurring and recurring expenditure for the management of the National Authorityincluding the salary and allowances payable to its officers and other employees; (ii) the expenditure incurred on monitoring and evaluation of works executed by the NationalAuthority and each State Authority; (iii) the expenditure incurred on specific schemes approved by governing body of theNational Authority. Explanation.For the purposes of this section, "scheme" includes any institute, society, centre ofexcellence in the field of forest and wildlife, pilot schemes, standardisation of codes and guidelines andsuch other related activities for the forestry and wildlife sector.